By Alois Vinga
STAR Africa Corporation Limited (SACL) has hailed the obtaining relatively stable economic environment for providing a sound basis enabling the company’s turnover to increase by 38%.
Presenting the company’s performance for the half year ended September 31, 2021, this week, SACL chairperson, Rungamo Mbire hailed the improved operating environment.
“The operating environment for the period under review saw the year-on-year inflation rate dropping to double digit numbers from August 2021, a culmination of the various fiscal stabilisation initiatives that the Government undertook since the introduction of the Reserve Bank of Zimbabwe Foreign Currency Auction Trading System in July 2020,” he said.
Mbire said the period was characterised by a healthier economic environment although electricity and water supply remained erratic during the period under review.
“As a result, there was a notable increase in turnover noted during the period under review from $2,84 billion to $3,92 billion, translating to a 38% increase.
“The escalation was largely buoyed by the enhanced throughput at Goldstar Sugars and the strength of the demand for all the Group’s products which remained high during the period under review,” said Mbire.
He said the improved turnover is also a recovery from the prior year’s depressed performance which had been caused by a 3-week shutdown in operations between July and August 2020 because of a Covid-19 incident that had occurred at the Harare Refinery.
The Group’s earnings before interest, tax, depreciation, and amortisation also grew by 20% from $482,10 million in the prior year comparative period to $579,68 million in the six months ended 30 September 2021.
“The improved financial performance is also direct outcome of the capital investment and equipment maintenance plan which has resulted in the increased plant throughput in the period under review. In historical terms, revenue increased by 168% to $3,59 billion from $1,34 billion recorded in the prior year comparative period, while EBITDA increased by 146% to $533 million from $216 million,” said Mbire.
Going forward, sustained improvement in throughput is expected in all the product-lines as the group continues to pursue high levels of operating efficiencies, health and safety standards and maximisation of shareholder value is foreseen.